2 men arrested over record gold smuggling haul in Japan

Thanks for laying out exactly how this is profitable.

There must a fairly good profit margin in avoiding that 8% tax to influence these people to risk prison.

The amount of gold confiscated in Japan due to smuggling hit a record 6.2 tons in 2017, 

6,2 tons of gold.. amazing.

So, 6,200 kilograms of gold was sold legally on the market in Japan.

The buyer paid 8% of the purchase price in tax.

The seller then pockets the 8% instead of passing it on to the tax agency (government).

If you can do that with gold, it makes you wonder just how much sales tax (shohizei) is being avoided of siphoned off by industries such as fisheries, entertainment or construction.

So those with enough spare cash to buy precious metals are fuelling a lucrative illegal industry. No Suprise there. 6 tons is a Lot of sad faces in the exclusive golf club circle.

"The amount of gold confiscated in Japan due to smuggling hit a record 6.2 tons in 2017,"

Which means about 100x times that is actually getting through. Just imagine what will happen when tax goes up to 10%.

Maybe they should consider lowering the tax on things like gold if they are causing more problems than solving. Its possible extra need to try and find smuggled gold, and all the gold that is successfully smuggled, they are losing more on gold NON paid taxes and the 3% increase in tax on gold.

I wonder if these guys were met by the same group of 8 customs interns along with a couple superiors that surrounded me when I was summoned to pick up  my belongings which I had shipped via a shipping broker when I moved to Japan. Ha. I still remember the すげい one of them muttered when he saw my itemized list of my precious belongings taped inside and out on each box. They must see people hiding contraband all the time if I rated a this much attention for less than 1 cubic meter of boxes of my loose boxers and nicknacks I couldn't part with.

BTW, I wonder who will have to pay for the lost gold.

Oh, they had gold WOW !

An 8% margin on 1.02 billion yen is about 81 million yen (assuming they will pocket the tax). They probably did this more than once so it’s quite a business (albeit illegal). Would be interesting to see what the punishment will be.